WELLINGTON/SYDNEY: The Australian and New Zealand dollars were drifting with a soft tone on Wednesday, as markets were hesitant and wary ahead of an EU leaders' conference call on Greece.
Aussie eases to $1.0289 from $1.0318 in New York, having eked out to a session high of $1.0371. It met strong selling pressure between $1.0360/80, according to a trader.
Major resistance at $1.0423 and support at $1.0245. It has lost nearly 3 pct in the past four sessions as risk sentiment soured.
Aussie trimmed gains made earlier in the session following subdued comments by China Premier Wen on the state of the global economy, euro zone crisis and domestic growth.
"His overall tone didn't sound overly optimistic," said a trader.
Earlier, the Aussie had benefited from Japanese selling dollars during the Tokyo fix and stronger Asian stocks with S&P futures up 0.7 pct.
Australian consumer confidence rises 8.1 pct in Sept, ending four months of declines, a private survey shows confidence, as lessening fears of a rate hike and better news on the economy helped offset global turmoil.
The Reserve Bank of Australia held its 4.75 pct rates steady earlier this month due to market volatility and showed no signs of changing its strategy.
Australian dwelling starts falls 4.7 pct in Q2.
Greek, German and French leaders will hold a conference call around 1600 GMT. Markets hoping for progress on at least the next tranche of aid for Greece, which would put off a default, at least for now.
The kiwi hovers around $0.8220, after climbing to a session high of $0.8264, from $0.8249 in late NY trade.
Kiwi's gains still seen temporary and likely to face strong resistance at $0.8280, with support building around $0.8200. The kiwi, which hit a near five-week low of $0.8118 on Monday, has seen steady buying under $0.8200.
Markets await NZ central bank's rate decision on Thursday, with global uncertainty expecting to overshadow the need to start raising rates to contain inflation. However, RBNZ still expected to affirm the need to start withdrawing stimulus at some stage.
Market pricing implies only 8 pct chance of a 25 bps hike, while the latest Reuters poll of 18 economists show a majority expects a rise in December or later, with only four expecting a hike on Thursday.
The euro holding steady against the Antipodeans, at around A$1.3270 on the Aussie and at NZ$1.6605 against the kiwi .
NZ government bonds with slight offered tone sending local yields up to 3 bps higher as safety demand eases.
Australian bond futures higher, with the three-year contract up 0.005 points to 96.440 and the 10-year 0.010 points higher at 95.875.
Copyright Reuters, 2011
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